Presentation on theme: "FORWARD LOOKING INFORMATION This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities."— Presentation transcript:
FORWARD LOOKING INFORMATION This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws, and are subject to risks and uncertainties that could cause actual results to differ. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. The forward-looking statements and information are based on certain key expectations and assumptions made by Cervus, including expectations and assumptions concerning the results of its due diligence review of the businesses proposed to be acquired by Cervus and the ability to the various approvals required. Additional detail about the material factors and/or assumptions employed to arrive at forward-looking information, as well as the material risk factors that may affect actual results, are contained in the MD&A section of our most recent quarterly filing which is available on the SEDAR website at Although Cervus believes that the expectations and assumptions on which such forward-looking statements and information are reasonable, undue reliance should not be placed on the forward looking statements and information as Cervus can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Cervus undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. The Presentation is intended for educational and informational purposes only and do not replace independent professional judgment. Statements of fact and opinions expressed are those of the participants individually. The reader should consult with a lawyer, accountant and other professionals in respect of contents hereof.
Aggregator of Equipment Dealerships Three Market Sectors: Agriculture, Commercial and Industrial Powered by Trusted and Recognized Brands Experienced Management Team Proven Growth Strategy Solid Sustainable Financial Performance OUR BUSINESS
THE UNMET NEED CERVUS’ SOLUTION Outgoing owners of independent dealerships seeking divestiture at a fair value; and to an experienced, reputable operator. Succession strategy with a proven dealership integration and operation model.
We align with global brands and manufacturers Our strong relationship with the OEMs is one of the most important factors for our ongoing success and growth John Deere, Bobcat, Clark, Peterbilt, Sellick and JCB are leaders in their core products, and are experts in the technology and history involved in developing their products We work with our manufacturing partners using mutual objectives to deliver our customers valued quality products and services OUR OEM RELATIONSHIP
AGRICULTURE OUR SECTORS COMMERCIAL & INDUSTRIAL
Agricultural equipment is required to plant and harvest crops to meet both food and alternative fuel needs. Market Drivers include: Global population to increase 23% by 2025 Food production will need to increase by an estimated 50% by 2025 and double by 2050 to meet global needs Demand for energy continues to rise Increased commodity prices and net farm incomes John Deere is the dominant global brand for agricultural equipment Opportunity to partner with local entrepreneurs and build John Deere’s distribution network THE STRENGTH OF AGRICULTURE
Construction, commercial and industrial equipment supports numerous sectors including building construction and oil and gas. Market drivers include: Increasing activity in the oil and gas sector A forecasted 19.4% increase in Alberta housing starts in 2012 Forecasted import and export increases between 4.0 and 4.5% in 2012 Powered by trusted and globally recognized brands: Bobcat, JCB, Clark, Nissan Forklift, Doosan, Sellick and Peterbilt EXPANDING C&I SECTOR
OUR STORES ARE THE “BUILDING BLOCK” OPERATIONAL SUPPORT Corporate Aftermarket Business Management Marketing Integrated Solutions STORE Revenue Customers Employees LEADERSHIP Dealer Principals Strategy Execution Accountability LEADERSHIP Dealer Principals Strategy Execution Accountability SHARED RESOURCE OFFICE Accounting IT HR Operating Capital SHARED RESOURCE OFFICE Accounting IT HR Operating Capital
OPPORTUNITIES - PETERBILT Operational and geographic diversification New product and service offerings Transportation industry presence in Saskatchewan, a growing resource market Competitive advantage, with further consolidation opportunities
2011 Agriculture Gross Sales by Segment (for year ended December 31, 2011) 2011 Construction & Industrial Gross Sales by Segment (for year ended December 31, 2011) 2011 Percent of Gross Sales by Division (for year ended December 31, 2011)
AGRICULTURE The majority of our new leases and sales come with a trade-in Used equipment is a major part of the agriculture business Large customers rotate their equipment frequently Equipment has a useful life of 25 years or greater COMMERCIAL / INDUSTRIAL Used for more hours, owners keep equipment longer Most new equipment is purchased without a trade-in Strength of product support aftermarket Strong rental opportunities EQUIPMENT SALES
Cervus Equipment Corporation (TSX: CVL) July 31, 2012 Share Price:$19.34 Outstanding Shares:14.7 million Market Cap: $285 million Quarterly Dividend$0.185 Yield3.8% Institutional ownership approximately 20 to 25% Approximately 65% of eligible employees participate in stock purchase plan Approximately 36% of outstanding shares are owned by officers and senior managers CORPORATE INFORMATION
INVESTMENT HIGHLIGHTS Eight year history of growth and profitability Proven growth strategy having grown from 8 dealerships in 2003, to more than 50 dealerships today Continued opportunities for acquisitions and organic growth Favourable exposure to robust Western Canadian market Diversification of sectors with strong globally recognized brands Quarterly dividend of $0.185 with potential for further growth